barooga sporties annual report 2019€¦ · report of the auditor for the year ended 30th june...

S P O R T I E S B A R O O G A A N N U A L R E P O R T

Annual ReportYear ended June 30 2019

SPORTIES BAROOGABurkinshaw Street, Barooga NSW 3644

(03) 5873 4448 | www.sporties.com.au

COBRAM BAROOGA GOLF CLUB Golf Course Rod, Barooga NSW 3644

(03) 5873 4304 | www.cbgc.com.au


Merran Socha

BOARD OF DIRECTORS

Gary Hunt President

Nick Demaio Brendan Mustica

Stephen Brooks Vice President

Darren Nolen Vice President

Steve Cusack Amanda Mayoh

LIFE MEMBERS

1981 Mr R.R. Brooks* 1991 Mr R.C. Nye 1991 Mr T.S. O’Dwyer* 1991 Mr V. Toohey 1991 Mr W.J. Yates 1993 Mr L.P. Brinkkotter* 1993 Mr C.I. McCartney* 1994 Mr S.P. Brooks 1996 Mr B.J. Quinane 1999 Mr N.A. Watt* 2007 Mr R.T. Jones 2012 Mrs J. Toohey 2017 Mr G. O’Dwyer2018 Mr B. Ryan

*denotes deceased life member

Jon O’Dwyer


NOTICE OF THE 40TH ANNUAL GENERAL MEETING OF MEMBERS TO BE HELD AT THE BAROOGA SPORTS CLUB

ON WEDNESDAY 30TH OCTOBER, 2019 at 7.30pm.

Business

Item 1. To confirm Minutes of the Annual General Meeting held on Wednesday 31st October

2018. Item 2. To receive and consider the report of the Board of Directors. Item 3. To receive and consider the Financial Statements of the Company and the

Report of the Auditor for the year ended 30th June 2019. (It would be appreciated if all questions relating to Financial Reporting be submitted in writing to the Chief Operating Officer 7 days prior to the

Annual General Meeting) The Barooga Sports Club Annual Report is available on the Sporties website: www.sporties.com.au

Item 4. Declaration of the Ballot for the election of two Directors. As there were only two

nominations received no ballot is required. Item 5. To deal with any other business of which proper notice has been given – Ordinary Resolutions 1 and 2 Item 6. To deal with any other business that the meeting may approve, of which due notice has

not been given.

A. Noble Company Secretary BAROOGA SPORTS CLUB LIMITED

BAROOGA SPORTS CLUB LTD ABN 96 001 757 491 Incorporated in NSW

Licensed under NSW Liquor Act


A.G.M INFORMATION FOR 2019 RESOLUTION

1. FIRST ORDINARY RESOLUTION That pursuant to the Registered Club Act;

(a) The members hereby approve expenditure by the club in a sum not exceeding $33,000 (exclusive of GST) over the following 12 months for the following activities of Directors in their service as members of the Club’s Board of Directors. (i) The reasonable cost of a meal and beverage for each Director before or immediately after a Board or Committee Meeting on the

day of that meeting.

(ii) Reasonable expenses incurred by Directors for travel to and from Directors meetings or other duly constituted meetings as approved by the Board from time to time on production of invoices, receipts or other proper documentation as evidence of such expenditure.

(iii) Reasonable expenses incurred by Directors in relation to other events including entertainment of special guests of the Club and promotional activities in relation to the club for which expenses are approved by the Board before payment is made, on production of invoices, receipts or other proper documentary evidence of such expenditure.

(b) The provision and marking out of car parking spaces for the exclusive use of Directors, and such other persons as the Directors shall from time to time approve.

(c) The professional development and education of directors over the following twelve months including: (i) The reasonable cost of directors and their partners attending at the Registered Clubs Association Annual General Meeting.

(ii) The reasonable cost of directors attending seminars, lectures, trade displays and other similar events as may be determined by the Board from time to time.

(iii) The reasonable costs of directors attending other Clubs throughout the State or relevant overseas venues for the purpose of observing their facilities and methods of operation

(d) The members acknowledge that the benefits in paragraphs (a), (b) and (c) above are not available to members generally but only for those who are Directors of the club.

2. SECOND ORDINARY RESOLUTION

"That pursuant to the Registered Clubs Act 1976, as amended, The members hereby authorise for the period preceding the next Annual General Meeting, payment of a total sum, as honoraria, for the positions named and for the net sums referred to below (exclusive of any statutory deductions) in respect of services rendered to the Club. The members further acknowledge that the honoraria are not available to members generally but only those members who are elected to the Board of Directors of the Club:

President: $10,000 Director: $5,000 Dated: 18 September 2019

Signed A. Noble, Company Secretary

By Resolution and Direction of the Board NOTICE TO MEMBERS Explanation notes to be read in conjunction with the proposed resolutions.

1. Ordinary Resolution No. 1 (a) and (c) is to have the members in General Meeting approve an amount no greater than $33,000 of expenditure by the Clubs Directors in relation of duties performed by the Clubs Directors and to attend seminars, lectures, trade display and other similar events including Registered Clubs Association of New South Wales Annual General Meeting and to visit other Clubs or related venues to enable the Clubs governing body to be kept abreast of current trends and developments which have a significant bearing on the nature and way in which our Club conducts its business.

Ordinary Resolution No. 1 (b) is to have members in General Meeting approve the provision of exclusive car parking spaces for the Directors of the Club and such other members of the Club as the Directors from time to time approve.

The objective of Ordinary Resolution No. 1 by members will confirm and set an upper limit on the amount to be expended and other additional benefits directly related to activities of the Club and meet disclosure requirements of the Corporations Act 2001 and the Registered Clubs Act 1976 as amended.

2. Ordinary Resolution No. 2 is to have the members in the general meeting approve the amount (specified next to each position) as honoraria for the positions named, in respect of services rendered to the Club.

The adoption of Ordinary Resolution No 2 by members will confirm the amount to be paid to each of the directors as honorarium and meet the disclosure requirements of the Corporations Act 2001 and the Registered Clubs Act 1976 as amended.

3. Each Ordinary Resolution must be passed as a whole and cannot be amended by motions from the floor of the meeting or divided into two or more separate resolutions.

4. To be passed, each Ordinary Resolution must receive votes in its favor from not less than a simple majority of those members, who, being entitled to do so, vote in person at the meeting.


BAROOGA SPORTS CLUB LIMITED MINUTES OF THE 39th ANNUAL GENERAL MEETING HELD AT THE BAROOGA SPORTS CLUB ON WEDNESDAY 31st OCTOBER 2018 AT 7.30PM

Caretaker President Mr. Gary Hunt declared the Meeting open and welcomed the 28 members present. Special welcome and mention to the Club’s Life Members present: Ray Nye, Stephen Brooks and Bill Yates. Apologies: Read out by Gary Hunt: M. Gaynor, W. Gould, K. Anderson, A. Ellis & V. Toohey. Moved: D. Toohey Seconded: G. Brown that the apologies be accepted.

G. Hunt then asked for Members to stand and observe a minute silence for the Members of the Club who passed away in the intervening twelve months out of respect for those people and their families. Minutes: Moved D. Toohey that the minutes of the Annual General Meeting held on Wednesday 25th October, 2017 as published be received and accepted. Seconded: J. Beard The Report of the Board of Directors: Moved G. Brown that the Directors Report as published in the Annual Report be received and accepted. Seconded: D. Nolan Financial Report: Moved P. Ashton that the Financial Report for the year ending 30th June 2018 be received and accepted. Seconded: R. Nye Member P. Ashton questioned that it was mentioned in the CFO’s Report that there was an increase in Green Fee rounds of 3,000. His question is how much income are we getting compared to last year? Has it gone up, is it still the same and how does it compare to our close competitors? CFO P. Carter responded that he had spoken to Justin Speirani regarding peak, off peak and social rounds and actual average round is pretty much the same as last year. Where we have lost out is a majority of the growth has not come through the peak times, it has come in off peak. Peak Round is $45, it is equivalent to Tocumwal, but cheaper than Yarrawonga. Off peak is between $30-$35 dependent on whether you include specials. We have two peak periods, one around October and one around April. Outside of these times it is off peak. P. Ashton replied, so do you think a small increase in that could improve our income by $50,000, it wouldn’t hurt a lot of Green Fee Players and take some pressure of Membership. P. Carter advised that is right. Last year there was a rise in Green Fees and there hadn’t been a rise in the previous three years. It is difficult to put it up to where it should be,

and it will gradually increase with another increase next year. It’s a matter that we let it go for a few years when we really should have incurred small increases. It is about $1.3M - $1.4M to provide the two courses. We really need to monitor what we are charging for Golf. This area is very price sensitive and people do shop around for the cheapest deal. We are slowly moving the price up. Ballot. Declaration of Ballot for the election of two Directors. With the resignations of Glen Brooks and Brendan Ryan in addition to the triennial resignation of two existing Board Members, four vacancies have been created. The two retiring Directors have re-nominated, and we have received two new nominations. With four vacancies to fill NO Ballot was required. The following four members will be appointed to the Board:

G. Hunt S. Cusack B. Mustica N. Demaio

Ordinary Resolution One & Two The President asked members to vote on the recommendation from the Board: Resolution 1: That an amount no greater than $33,000 of expenditure by the Clubs Directors in relation of duties performed by the Clubs Directors and to attend seminars, lectures, trade display and other similar events and also to approve the provision of exclusive car parking spaces for the Directors for the Club be approved. Moved: B. Ryan that the recommendation of the Directors expenditure not exceed $33,000. Seconded: G. Gaylard Resolution 2: That the total honorarium for directors be $50,000 and to be distributed $10,000 for President and $5,000 for each Director. Moved: T. Poole that the recommendation of the Board for Director Honorariums be approved. Seconded: B. Ryan Life Membership for Brendan Ryan

Moved D. Nolan that the Club approves the Board recommendation of Life Membership for Brendan Ryan. The recommendation requires two thirds majority of voting Members present. Results: Unanimous Seconded: J. O’Dwyer GENERAL BUSINESS

Letter received – Apology for the AGM 31/10/18 – Wayne Gould Chairman/Captain CBGC. Letter stating on behalf of the membership of CBGC Wayne Gould would like to congratulate the Board for their ongoing commitment and support to the continued improvement of both golf courses


and clubhouse facilities for the enjoyment of members and visitors (of which there are many) to Cobram Barooga. D. Toohey – President of Sporties Barooga Bowls Club. Thank you for the 20th Year. Congratulations to G. Brooks on becoming CEO. Marcus Fry - Barooga Football Netball Club thanked the Barooga Sports Club for their support. Seven teams in finals, Seniors Grand Final. S. Brooks – RSL. Thanks for the ongoing support. New area not possible without the support of the Barooga Sports Club. President Rob Brown would have liked to be here. G. Hunt – Relay for Life Staff Team. Please support if you can. Staff working hard to raise funds for cancer research. There being no further business the meeting was declared closed at 7.59pm.


It’s with a great deal of pleasure that I provide the enclosed Report on behalf of the Board to our Members. The past 12 months, whilst challenging, has produced another strong financial performance. This coupled with our continued commitment to our Members and the broader community are key deliverables of the Board. Our Senior Leadership Team; Bobby Brooks, Peter Carter, Anton Noble, Justin Speirani and Tony Tranter have now been in place for a year and are working tirelessly to deliver positive results financially and most importantly, find and deliver new revenue streams into the Group which is paramount to our Club’s ongoing sustainability. The overwhelming key to our success is our people. The Board are particularly proud of the service they deliver to our members and the broader community. We receive an enormous amount of positive feedback which is a reflection and testament that our people are firmly focused on customer experience and quality service and proud of the product they are working with. The Board is very proud of the standards being set by our service staff and these standards are certainly being matched by the product we are producing, be it on the Golf Course, the quality of food or the presentation and cleanliness of our venues. The support of you our Members, remains at a high with Members benefits totalling $924,000 over the last financial year. We have continued a high level of contributions to the Community through the Club Grants Program this year in excess of $350,000. These grants have been shared with many Community and Sporting organisations. The following are two good examples: Cobram Cinema Project - An outstanding project, driven by the youth of Cobram that will be available for all the community, in particular our youth. Blue Earth Program - Primary School Student Health & Wellbeing project running in 6 local Schools. Bridges Villas continues to show great patronage and receives a constant stream of positive feedback as the premium accommodation in Cobram Barooga. This is a fantastic result and will only grow with a strategy to develop golf packages, corporate events and conferencing. A big thank you to the many volunteers at our Bowling & Golf Clubs who make an enormous contribution and continue to provide a valuable asset to our organisation and town. In addition to paid employees, a lot of people volunteer a lot of time to ensure these Clubs run successfully. On behalf of the Board, a big thank you to our Senior Leadership Team and to my fellow Directors for your ongoing dedication and commitment. Most importantly thank you to the entire staff for your commitment and willingness to embrace change that is now a constant in the daily life of hospitality. United, you are what makes us great. Gary Hunt President


CHIEF FINANCIAL OFFICER’S REPORT The full year result for financial year ended 30 June 2019 once again reflects a solid performance with a reported EBITDA of $ 1,439,766. This result does include proceeds from the implementation of the Tabcorp Gaming Solutions service offer. This year’s financial outcome, once again reflected improved performances across the Food and Beverage sector with Revenue up by $295,000. Gaming turnover was also up by 12.9% on the previous year, generating an additional $818,320 in Gross Revenue. It is pleasing to report that overall, our expenses were slightly below the previous period after the Berrigan Sports Club demerger costs have been excluded from the result. The Business has stabilised in relation to Repairs and Maintenance costs and leakage through other areas with better focus on cost control from all staff. The Bridges Motel Occupancy rate declined year on year sitting at 67.78% compared to a slightly higher rate of 70.23% for the previous year. Golf Packages and Corporate Nights making up approx. 77.1% of all nights booked for both years. The average Rate per night increased in FY19 mainly due to an increase in Tariffs which resulted in our revenue from the Motel for the year being slightly above the previous periods result despite a decline in occupancy. The EBITDA result of each Sporties Group operation is as follows:

Barooga Sports Club $1,662,432 (2018: $1,395,849) Sporties Cobram Barooga Golf Club -$ 232,236 (2018: -$ 250,355) Bridges Motel $ 132,268 (2018: $ 69,280) Sporties Health & Fitness -$ 133,170 (2018: -$ 142,139) Barooga Sports Bowls Club $ 10,472 (2018: -$ 7,102) $ 1,439,766 $ 1,065,533 During the year, $1,600,000 was paid off the bank loans, with the current balance being $2,404,545. The Better Business Loan balance of $404,545, will be paid out during the 2019/20 Financial Year and the Market Rate Loan which has a balance outstanding of $2,000,000 will be renegotiated by the end of this calendar year. Capital Expenditure for the year totalled $1,195,000, with funds spent in various areas of the Business. Major areas of expenditure were:

- Gaming Floor Renovations – Sporties Club - Function Room Chairs – Golf Club - Nineteen 81 Bar and Outdoor Area - Fire Detection System – Sporties - Water Supply – Golf Course – Commencement of Bore Resurrection - Computer Equipment Replacement

We are also very proud of the contributions made to many Community and Sporting organisations through our ClubGRANTS program, Sponsorships and Donations which this year totalled $354,720. Some of these beneficiaries were:


Cobram Barooga Business & Tourism Cobram Football Netball Club Bluearth Foundation St. Josephs School - Cobram Cobram Riding for the Disabled Katamatite Primary School Yarroweyah Football Netball Club Barooga Recreation Reserve Rotary Club Cobram Barooga Football Netball Club Cobram Roar Soccer Club Cobram Special School Picola & District Football League Barooga Cricket Club The Sporties Group also continues to provide significant benefits across the local community through its wages bill of $7.3 million and its expenditure on members totalling $924,000 during the FY2019 financial year.

In summarising the Club’s financial year, it was once again a positive performance having met all of our financial obligations to our Bank and at the same time being able to invest back into the Business with the Gaming Floor Renovations and the transformation of the Garden Room into our new showcase entertainment area Nineteen 81.

All the issues relating to our Balance sheet that have been reported previously have now been cleaned up.

We continue in our endeavours to grow our revenue streams having commenced preparation of a Master Plan for our Golf and Health and Fitness businesses. Both Bobby and Tony are lobbying all forms of Government for funding opportunities which if realised will see some exciting new activities emerge across our organisation.

The Business is also focussing on drought proofing our Golf Course through purchasing additional water allocation and resurrecting the spearpoint bore. Peter Carter Chief Financial Officer


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BAROOGA SPORTS CLUB LTD ABN 96 001 757 491

barooga sporties annual report 2019€¦ · report of the auditor for the year ended 30th june...

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